China Constr Bank H

Dear investors, analysts, friends from the media, ladies and gentlemen, good afternoon. Thank you for joining us in the 2022 annual results announcement conference by China Construction Bank. Thank you very much for your support and interest in the CCB. The results announcement conference today is held in Hong Kong and Beijing simultaneously through a video link. This conference is also live streamed for shareholders, investors and the public. With us in person in Hong Kong are Mr. Zhang Jingliang, the President. Mr. Wang Bin, Vice President. Mr. Sun Liurong, the Chief Financial Officer. In Beijing, Mr. Cui Yong, Vice President. Mr. Zhihong. Mr. Li Yun. Mr. Chen Yuan Guo. Today, we also have Mr. Xu Jian Dong, Equity Shareholder Representative, and Mr. Wang Yi, Supervisor Representative. They are with us in the Hong Kong venue. And we have Ms. Liu Fang, Ms. Li Lu, shareholder representatives and Mr. Zhao Xijun, supervisor representative in Hong Kong and Beijing. Present are also persons in charge and personnels from relevant departments of the headquarters. The results of our bank for 2022 have been disclosed yesterday. and the results presentations have been published on the bank's website for your review. Before we take questions, Mr. Zhang Jinliang will give a presentation on the business operation of 2022 of the bank. Mr. Zhang, please. Dear investors analysts and friends from the press good afternoon welcome to this results announcement conference i'd like to express my sincere gratitude for your continued interest trust and support today we are here again in hong kong seeing so many old and new friends face to face i'm very pleased Next, I'd like to report to you on CCB's overall operation of last year and the focus of our work in the next phase. In the past year, we have thoroughly implemented the decisions of the CPC Central Committee and the State Council, adhered to the general keynote of seeking progress in stability, insisting on high-quality development, carried out the new development concept precisely and continued to strengthen the customer base and the quality and efficiency of operation and dealt with risk challenges and achieved good operation and financial performance. By the end of 2022, Total assets exceeded 34 trillion RMB, representing an increase of 14.37%. Credit investment and bond investment achieved rapid growth. Total liabilities 31.72 trillion RMB, up 14.77%. Deposits exceeded 25 trillion RMB, an increase of 11.81%. Net interest margin 31 million up. The net interest margin was 2.02%, ROA 1%, ROE 12.27%, comparable to the leading level of the industry. The NPL ratio, 1.38%, down 4 basis points from the beginning of the year. The provision coverage ratio is 241.53%, capital adequacy ratio 18.42%, resulting a steady increase in asset quality and risk resilience. We have continued to create value for our shareholders. Since the listing of our edge shares in 2005, CCB has paid a total of 1.0357 trillion RMB in dividends. The board meeting held yesterday recommended a cash dividend of RMB 0.389 per share for 2022 to all shareholders, totaling 97.254 billion RMB, a dividend payout rate of 30% in recent years. In the past year, we insisted on strategic leadership, integrating our development with the national development. We continue to cultivate new business momentum with traditional advantages, serving the new development pattern with new financial practices. We explore new modes of support of real estate development, actively participated in rental housing business and initiated the first rental housing fund in China and build a complete service loop from investment, financing, management and exit. We lit the inclusive finance market with a loan balance of 2.35 trillion RMB up more than 25% making our bank the largest financial institution in the world in terms of inclusive finance supply. We stimulate business growth potential with financial technology with agile in responding to business needs internally and empowering social governance externally. We have built the brand of CCB Cloud and accelerated the construction of digital infrastructure. We have built a comprehensive financial service system for rural revitalization. The balance for agricultural loans exceeded 3 trillion yuan and public loans in counties exceeded 2 trillion yuan bringing financial liquidity to revitalize the rural areas. The balance of green loans exceeded 2.75 trillion yuan, an increase of more than 40% and a record high, which strongly supported the green transformation of infrastructure. Clean energy and clean conservation and environmental protection made CCB a green bank. The digital operation continued to be deepened. The twin star ecosystem of mobile banking and CCB life has begun to bear fruit. The number of mobile banking users reached 440 million. The number of users of CCB life reached 100 million. We have undertaken the issuance of government consumption vouchers in more than 220 cities, helping to expand domestic demand and boost consumption. Over the past year, we have focused our main business and responsibilities adhered to serving the real economy, deepening the structural reform on the supply side, and strive to achieve a virtuous cycle and co-prosperity between finance and real economy. First, we continue to increase financial support and implement financial policy in a full and targeted manner, providing support to the economy in the down cycle. We have added 2.39 trillion yuan in loans, an increase of more than 370 billion yuan year-on-year and added 935.6 billion yuan in bond investment and maintained the top position in the market in terms of underwriting volume and subscription ratio of government bonds providing strong support to the rapid stabilization of the economy. At the same time, we also actively expanded funding channels, enhanced the ability to expand deposits and reduce costs, and maintained the coordinated development of assets and liabilities. Second, we optimized the resource allocation structure. Through strategic layouts, we optimized financial resources to specific areas and improving assessment mechanisms. We support major regional strategies and coordinated development. Beijing, Tianjin, Hebei, Yangtze River Delta, Greater Bay Area, and Chengdu, Chongqing regions have increased their shares in our business. The credit in central and western and northeast China have increased year on year. The balance of infrastructure loans, 571 trillion yuan, an increase of more than 12%. The balance of loans invested in manufacturing industry is 2.24 trillion yuan, an increase of more than 32%. The balance of strategic emerging industries is 1.47 trillion yuan. support the stable and healthy and at the real estate market increase the credit support for high-quality property developers guaranteeing the delivery of beauty with targeted financial services thirdly we continue to improve the ability to create value by adhering to asset light and capitalized strategies giving full play to the group's multi licenses and enhancing the comprehensive financial service capacity we will need to strengthen our services to small and medium sized customers and long tail customers and adjust our asset allocation strategy according to the market situation, improve the yield of our assets, striving to expand low-cost settlement funds and tap into the revenue potential of refined management. Over the past year, we have adhered to the customer-oriented approach, integrated and optimized our three business segments, corporate, financial, personal and capital management, to better serve our clients with focus and strive to create value for our customers. Our corporate finance has been steadily advancing. We built a leading scale and convenient service system for public customers and corporate customers with 9.35 million institutional customers. The amount of non-discounted loans to public customers increased by 1.43 trillion. The personal finance business contributed more value. We continue to deepen our stratified, grouped, and graded personal customer management system. Personal customers have reached 739 million, accounting for 56.65%. Personal loans amounted to 82.4 trillion RMB, maintaining its position as the number one bank in retail credit. Personal consumer loans amounted to around 300 billion RMB up 26%. Personal loans and farmer loans among other products have been growing very well. The bank promoted the deep integration of digital services and wealth management managing nearly 17 trillion RMB in financial assets for personal customers, a record high. The capital management business developed steadily. The group maintained its professional and prudent position and enhanced its comprehensive service capabilities. The asset size of its financial market business exceeded 9 trillion. The asset management scale is 5.79 trillion. under custody is around 19 trillion. Maintaining its industry leadership, the group also depend its financial service system for the elderly and ranked first in the industry for pension wealth management.

Over the past year, we have promoted the improvement of our comprehensive risk governance system and strengthened the three lines of defense of business operations, risk control, compliance, and auditing so that our risk management capabilities have continued to improve and effectively supported high-quality development. We continue to strengthen our credit risk control by adhering to the concept of comprehensive whole process, whole staff in whole situation. and performed well in key areas, with NPL of public loans falling by 19 bps, and the quality of loans in infrastructure manufacturing and wholesale and retail sectors further improved. We actively and steadily helped to resolve risks in the real estate sector, and the quality of related goods and services was at a better level in the industry. Risk classification was prudent and solid, with the overdue rate 35 bps below the NPL rate and overdue NPL negative price scissors of RMB 74 billion. The risk monitoring and early warning system provided 98% of early warning coverage for large and medium-sized accounts with an average advance of 29 months. Eighty-seven percent of early warning coverage for SMEs with an average eight months ahead of time in terms of the warning promote early detection and control of credit risk. We strengthen the control of market risk, liquidity risk, cybersecurity risk. and any other new types of risk and continue to promote the construction of a digital universe compliance system with solid effective and anti money laundering network and safe and stable business operations over the past years ccb's business development has been widely recognized behind our achievements We have benefited from our faithful adherence to the decisions and deployment of the Central Party Committee and the State Council, our thinking and exploration of the laws of economic and financial development, the joint efforts of the Group's 380,000 employees, and the support and the companionship of our customers and shareholders. this is the inaugural year of the comprehensive and thorough implementation of the spirit of the thirtieth party in addition the twentieth party congress drew up a grand blue print to promote the great rejuvenation of the Chinese nation, and after the two sessions, Premier Li Qiang attended a press conference and answered questions from the journalists summarizing the outlook for the Chinese economy. It will break winds and waves and sail towards a bright future. Despite the great uncertainties in the international economic and financial markets, we are confident and full of expectations for the long-term positive future of the Chinese economy. CCP will actively seize the vast opportunities in China's modernization process, fully accurately and comprehensively implement the new development concept, ride the momentum and strive to achieve new breakthroughs in quality development. in the new year we will maintain our strategic determination deepen our financial initiatives and promote the convergence of the first and second curves we will consolidate our first mover advantage in housing leasing strongly support the construction of subsidized rental housing actively participate in the issuance of rental housing bring into play the demonstration effect and driving role of housing leasing funds explore new models of real estate financial services and contribute to the stable and healthy development of the real estate market promote the construction of a greater inclusive finance ecosystem and improve the new digital inclusion model, we will vigorously promote the application of the Huidongyi platform, promote the building of ecology and smooth operation, and consolidate our leading position in the market of inclusive finance, strengthen the empowering role of financial technology, continue to improve our technological governance capabilities, improve our R&D and operation structure system, strengthen our digital operation capabilities and deepen the integration and development of the twin stars of mobile banking and ccb life in the new year we will firmly fulfill our mission and give full play to our strengths to serve the real economy construction bank was born out of construction and has thrived because of wherever there is construction there is a construction bank and this has been deeply rooted in our dna we will continue to enhance our ability to serve the country's construction continue to increase our credit investment support the promotion of major national strategies and do a good job in supporting the financing of the two new and one priority we will help develop the basic role of consumption and the key role of investment accelerate the development of personal consumption credit effectively meet reasonable housing finance needs and strengthen resources going in manufacturing science technical innovation green and low carbon areas we will deepen and deepen the layout of common prosperity finance help serve the revitalization of the countryside actively explore County business expansion models improve the integrated online-offline service system for the revitalization of the countryside and promote the expansion and penetration of products and services such as Unonexpress. With the power of financial technology, financial services are seamlessly integrated into the production and lives of urban and rural residents, making financial services a basic right available to everyone and a tool for the public to pursue a better life. In the new year, we will accelerate the construction of a customer group grading stratification and classification management system, deepen group synergies and comprehensively improve the marketing and the service capacity of our customers as well as deepen the integrated operation. The competition for commercial banks is ultimately a competition for customer service capabilities We will continue to improve the group's integrated management system, strengthen the synergy between the parent and subsidiary, the head office and branches, the various business segments, domestic and overseas branches, and the online and offline sector, so as to enhance the overall management synergies and meet the integrated and diversified financial needs of the customers. deepen the synergy between financing and intelligence continue to optimize the layout of assets drive the development of price setting consultancy settlement investment banking and trading business and accelerate the transformation to light asset and light capital strengthen the integration of domestic and foreign currency operations effectively consolidate the foundation of foreign currency business capacity further enhance the level of cross-border business services and strengthen the ability to participate in international competition deepen the balanced development of asset and liabilities optimize the allocation of major types of assets and liabilities strengthen the measures to stabilize and increase deposits balance quantity price risk and strive to achieve a unified development in terms of a quality structure scale speed efficiency and security in the new year we will enhance our bottom line thinking better coordinate development and safety strengthen market research and judgment strive to stay ahead of the market cycles and risk curves firmly guard the bottom line of risk compliance we will always respect and follow the laws of financial development insist that our business operations are bounded by our risk management capabilities and always give top priority to improving the quality and efficiency of our development we will continue to optimize and improve our comprehensive active and intelligent modern risk management system improve the group's unified credit risk management system and ensure that the core indicators of asset quality are in a reasonable range we will pay close attention to financial market fluctuations in international developments and guard against new types of risks and external shocks continue this continuously strengthen internal control compliance and any AML capacity building to effectively protect the rights and interests of financial consumers. Standing at a new historical starting point, we will ride on the wind of the era of Chinese modernization, create a better future with practical work and continue to create greater value for our clients, shareholders and society. Thank you all.

Thank you Mr. Zhang. Now we will take questions. This conference is taking place in both Hong Kong and Beijing, we have a lot of investors joining us. So we will alternate questions between Hong Kong and Beijing conference rooms. So more analysts will have opportunities to ask questions. We suggest that you limit your questions to only one each time. And before that, please identify yourself and your affiliation. We will start from the questions in Hong Kong. The gentleman on the third row, thank you for the opportunity. My name is Richard Chu. I come from Morgan Stanley. Congratulations on the stable performance of CCB last year was full of challenges but despite that most of the indicators have shown very steady growth. What are the drivers behind this stable performance? In 2023, the economy is becoming stable and it's moving upwards. So do you have any other new plans and new strategies to address that? Thank you. Thank you, Mr. Xu. In 2022, faced with complex situations, the CCB implemented the deployment of the CPC Central Committee and the State Council and achieved a stable and excellent business performance. Last year, net profit was up by 6.33%. ROE maintained at a comparable level. The first-tier capital has increased instability. Net NPL ratio is down steadily and the provision level is on the rise. Liquidity risk indicators have been in line with the regulatory requirements. Last year was a difficult year. We have a balance between security liquidity this is hard one faced with the risks in the macro economy we've been committed to our responsibility as a major bank and enhanced our credit expansion stabilizing the economy ilpr was down last year and there was some negative impact, but internally our net interest spread was down by 11 basis points, but the balance of interest bearing assets is up by 11.91%. The net interest income is up by 6.2%, which is satisfactory. In 2023, I believe The banking industry will embrace a better economy. The new leadership of the Chinese government aims to expand domestic demand through reform and innovation. and address and mitigate possible risks. This combo of policies will create better opportunities to the banking industry in China. In 2023, we will fully implement the spirit of the 20th National Party Congress and serve the real economy by mitigating financial risks and deepening financial reform. we will stick to our main responsibilities and main business, seeking progress from stability and improve the quality and efficiency of our operation, providing better services to our customers and creating greater value to shareholders. I'd like to focus on some specific areas, especially increasing revenue and reducing cost in terms of Increasing revenue, first of all, we need to maintain the stable progress in net interest income. We have a very high asset adequacy ratio. We will continue to offer greater support to the real economy. So credit expansion and bond investment will rise in a stable and reasonable manner. Our capital adequacy ratio will be enough for us to do that. We need to look for better structured business and high efficiency. Last year, the asset size of our bank was nearly 35 trillion. So there is some potential for structural reform. Over the years, we have been increasing our efforts to adjust major assets and reduce low-interest assets improving on high-interest assets like bonds. Last year, the proportion of these two asset types was up by 0.79%, contributing a lot to business growth. Besides, the CCB attaches great importance to retail credit services, personal loans are 39% in total loan size. Last year, retail loans were not in good markets, but retail loans of our bank maintained very good growth. Mortgage balance was up by 90 billion. Consumer loans and small business loans have achieved 27 and 83% growth respectively. This year, we will see the opportunities of economic recovery and see and increase credit expansion, especially in retail loans. This is about interest income. Secondly, on non-interest income, as you see last year, bank fees and commissions accounted for 15.31%, making us one of the best performing banks in the industry. In 2023, we will seize the opportunities of economic recovery and give full play to our advantage of having multiple licenses In bond issuance, consultancy, wealth management, custodian services, credit cards and consumer loans, we will make a bigger effort. Other non-interest income, other than bank commission income, we will keep a close eye on the changes in equity and bond market and adjust our off-balance sheet and in-balance sheet assets. managing risk exposure well, making sure that we can reduce and minimize the market turbulences and its impact on our non-interest income. On cost, we need to reduce cost and improve efficiency by better cost management. There are three aspects. The first one is asset cost, capital cost. We need to strengthen our thinking operating like a platform and digitalizing business we need to build scenarios and building ecosystems so our financial products can be integrated into customers life scenarios we need to strengthen our customer base both in individual and corporate customers. We offer diversified multiple financial services to customers by offering them by we will receive low cost capital. We strengthened the stratified and categorization of customer management. There were a few numbers which were covered in the presentation. For example, personal customers reached 739 million mobile banking 440 customers CCB Life sold over 100 million customers corporate customers 9.35 million RMB settlement accounts 13.27 million customers inclusive finance 2.53 million customers we are expanding wealth management business achieving very good results personal customers AUM is nearly 17 trillion and private banking's AUM reached around 2.25 trillion RMB the asset management size including fund wealth management trust, pension, et cetera, has reached nearly 600 million. Custodian services have surpassed 19 trillion. We believe with the implementation of our strategies and a higher customer base, higher AUM in personal loans and FP total size Our liabilities and capital cost will be improved a lot. That's for capital cost. Another cost comes from business operation. Last year, cost to income ratio is 28.25%. a good one compared with other banks. In expenses, we have seen increase in staff expenses and a decline of 5.18% in non-staff cost. We have been very strict in reducing expenses, but we strengthen our investment in strategies and technologies. Last year, we invested 23.3 billion RMB in technology. accounting for 13% in our expenses. In the new year, we will strengthen our efforts to control cost, minimizing regular costs so we can spare more investments for strategies and technologies as well as custom expansion. The third one is to reduce the cost of credit services. Credit cost is the highest among all the costs for a bank. The cost was 0.66, down 1%, making new contribution to the business growth of the bank. In the next year, we need to strengthen risk management and we need to learn the lessons from the European and US banks, which went through some crisis. We need to optimize our risk management system and we need to adjust our asset allocation strategy dynamically. We need to coordinate credit risks, liquidity risks, and market risks so we can withstand the test of market cycles and economic cycles and become a balance stone for national economic development.

Thank you. Thank you. so we now pass the floor to Beijing Hello, hi there. I'm from CCTV and we have also noticed that there is, what are the credits are going into and in addition considering the current financial situation and what are the credit extensions and the extensions will mainly go into which area? So we have Mr. Cui Yong from Beijing to answer this question. Okay, thank you. Thank you for your question. Yes, indeed. We pay attention to credit extension and credit extension is also a core area of our management work and for the whole of last year for CCB, we have carefully and prudently implemented the parties spirit. So on one hand, we need to extend the credit well, and the second, we need to extend it to the right areas. And in the last year, we have also realized some very fast credit extensions. As we have heard, with our fast credit extension and there is an increase of 12.7% and the total amount is 2.39 trillion. So the scale is really very big and there are two questions. in your question just now and one is on directions and secondly which areas are we going into and let me give you a set of data for 2022 and this will help answer some of your questions and first is inclusive finance and again this is an area whereby our government and our party focuses And for last year, we have about 470 billion increase and the speed is 15.29% of increase. So this is a very important area of a credit extension increase and this has ensured our inclusive finance customers steady growth. And the second is in manufacturing and in green industries. This is an area whereby state council pays great attention to and is guiding everyone to go into this area. And for this area, our growth has exceeded 40%. So this area for green loans as well as this sector of growth and you can see that it's a faster growing and thirdly is in the new industries our growth has reached 60 percent so this again is a very fast growth and the third area is for the revitalization of the countryside and we have heard that for countryside revitalization has already exceeded 3 trillion and the growth has reached 21.8%, so for CCB, this is a huge area of market for us. In addition, the asset quality is very high. The fourth dimension is to play our strength, which is infrastructure. Actually, last year, from the central government and state council, they have also guided very fast for banks to go into infrastructure and therefore we focus on the two new and one priority work. So this is the area of work that we focus on and for infrastructure the balance is already at 5.72 trillion and so the growth is roughly in line with the group's growth. So, number five and this is to support the personal aspirations for a better life and we actively support our citizens for their structural demand as well as upgrading of housing demand and in addition we also support consumption upgrading and to support some of our SMEs and micro businesses and here for personal consumption and it has gone up by 28% and for mortgages has gone up by 80% so you can see that all of these figures it has reflected whether it is in terms of the growth for volume and the speed we have really sped up and in terms of targeted extension we have also realized our targets. And in terms of 2023, we have the following areas that we focus on. First is in terms of volume, we need to maintain stable growth. At the moment, we have just rebounded from the pandemic. The economy is in the early stage of a recovery. As we have said, as a major SOE bank, and we need to shoulder our responsibility to continue to help the real economy and to ensure the stable recovery of the economy. So you can see that from the beginning of this year, yes indeed in terms of the demand for credit is still quite strong. At the moment the competition in terms of pricing is still quite aggressive and therefore we need to realize the stable growth. Second, in terms of the rhythm, we need to be fast. So we need to look at the real economy's demand. In addition, we have also looked at our previous four quarters of extension in different areas. And based on this, combining with the need of our customers, and we are investing in a reasonable fashion so that we can move forward. In the first three months of this year, we can see that actually we are ahead of our peers. In terms of structure, we will continue to improve our structure, as we have heard from Mr. Zhang, and we will continue to consolidate our strength as a retail bank. In the meantime, for our personal credit, there has been some dampening, and we believe that in the next few months, we will see some recovering, and perhaps for some of our small farmers and small business and sole proprietary business and we will see some recovery and we hope that we can achieve some breakthroughs and on corporate business we need to be targeted and precise and to look at precision finance and precision finance is an area that we have focused on and you have also seen that we have made deployments in all these areas so we will launch new products in precision finance. In terms of manufacturing and green finance, innovation, technology and on the basis of last year will continue to grow and we will continue to push forward the development in these areas. In addition, we also have an area that we have gone in this year and this is basically looking at the current situation whereby we are trying our best to satisfy the personal aspirations for a better life and this area is mainly for education, health, sport, tourism, etc. And we are calling this the happiness sector and focus on the well-being of our citizens. And so those are my answers for your question. Thank you.

Thank you, Mr. Tsui. Now back to the Hong Kong venue. Thank you Mr. Hu from UBS. Thank you Mr. Zhang for visiting Hong Kong along with your delegation. I'd like to ask about your asset quality. The asset quality of the bank has maintained a stable situation despite the difficulties in the last year. I'd like to ask about the reasons behind, I guess, there were difficulties in different aspects like inclusive finance, but retail business, including mortgage and credit cards, is looking at higher NPL ratio. So in this year, which segments do you think will expect some problems that are with special attention. On top of that, from a provision and credit cost perspective, provision was down 50% compared with last year. And how do you look at the possible level of provision in this year? Thank you. Thank you. Long time no see. Last year, the NBL ratio was 1.38 and the special mention rate was 2.5%. Provision rate, 214.52%. There are two things. Number one, CCB has a very prudent and solid categorization of asset categories. Our NPL rate is 1.38, but default rate was 1.03%, and the CSER difference is negative 74 billion. it has improved for three consecutive quarters. So our categorization is very stable and solid. Second, on provision, the MPL was 292.8 billion, but our provision is above 700 billion, 772 billion. It's 2.5 times the MPL, so we have sufficient capability to cover current risks and we're fully confident to mitigate possible risks. In other segments, corporate loans see an MPL ratio of 2.08% down year on year. Personal loans Personal loans see an MPL ratio of 0.55%, which is slightly increasing, but it's still at a lower range. You are interested in personal mortgage loans. The MPL ratio is 0.7%, and it's up by 0.17% year on year, which is up to our expectation, and it hasn't. had any impact on the asset quality of the bank in general. As for 2023, the asset quality of the bank is both affected by the real economy and also its own capabilities to control risks. From a macro economy perspective, we are very confident, as the Premier Li said, It will break wind for a bright future. As for our bank, we believe the bank has always maintained good foundation for internal risk control. In the coming year, we need to strengthen internal risk management and continue to manage our existing loans and other assets and dispose of non-performing loans in a good way. We will safeguard our clean balance sheet like protecting our own eyes. Specifically speaking, in new loans, we will be more careful in customer selection and concentration risk management so we can invest our credit in the right way. We will adopt a so-called see-through principle. In our group and in both China and abroad and in subsidiaries and in the headquarters, every type of asset will be under management, adopting the same risk appetite and risk management standards. We need to make sure that the risks will not be passed through subsidiaries and headquarters, and we need to prevent the implicit concentration risks and cross dissemination of risks between different subsidiaries. In terms of existing loans, we need to give full play to FinTech and continue to strengthen the monitoring system so we can discover and identify risks as early as possible and dispose of them. As for existing We need to strengthen our operating thoughts to think out of the box in risk management methods. As for promising enterprises, we need to provide active financial support. At the same time, we need to make bigger effort in disposed non-performing loans, adjusting credit structure. and offering very good support to the asset management in the future. We are capable of managing different types of risks well. We believe in 2023, the asset quality will be in a normal range and credit cost will be maintained at a stable level. Thank you.

Thank you. We now go back to Beijing. So we have this gentleman in the third row, please. Thank you. Thank you for this opportunity. This is Zhang Shuai from CICC and I would like to ask with respect to the European and American banks' risk events and what are the impacts on the CCB and second, what are the premium What are the impacts on your business? And thirdly, what has CCB done in this area? Well, we will have Mr. Ji Zhiheng to answer this question. Thank you very much. Actually, the question that you have asked is a question that in the market and a lot thinkings about what has happened and a lot of reflections and so first of all in terms of Credit Suisse and we do not have any exposures and the direct impact is very small and even if we talk about indirect or derivatives and the impact is very limited and our analysis are as follows. Looking at the market we can see that monetary policy and we are not very correlated with the international world, especially in Europe and America. You asked about spillover effects and our monetary policies are always very stable. And in terms of the financial system as a whole, we have very sufficient liquidity and for our financial market it is operating very smoothly. So this is one question. Second question I would like to emphasize in terms of the group. we continue to adhere to the very robust and stable policies, and just now Mr. Zhang has specifically mentioned about this point, so I won't go into details. We will continue to make sure that we will consolidate the relationships between the parent and the subsidiary in addition for overseas business we continue to focus on our development and we focus and follow the European and American risks and in addition we look at the duration management and we look at this with plenty of stress testing for Fed has hiked for quite a while and our relative business have maintained very good operation in terms of the duration management and it is very short durations and in terms of the fluctuations in the international market and we have plenty of capability to cope with this. And the third answer is that we look at the management of liquidity and liquidity's safety. This is our bottom line. So overall speaking, for our group and in terms of our business expansion, it is all based on a robust asset and we always look at the matching of our total volume and assets. Just now we have heard Mr. Zhang talking about continuously improving the structure of our assets and looking at our liabilities. We have many different channels and we have many different types of customers. therefore this is very stable in terms of foreign currency. We continue to manage this with the capital allocations and for overseas banks and in terms of our pricing and there is a great match for our group. We continue to follow the liquidity management for the systematically important banks especially for overseas institutions as well as for the parent company and subsidiaries liquidity management and it is always at a stable and robust level and all of these are above the requirement of the regulators you have also managed talked about the management of market risks and overall speaking the management of liquidity and market risks are well correlated and for the group we continue to adhere to very prudent investment policies and we talk about and emphasize on fast response and whilst exploring our risk management and we also have three aspects of importance that we focus on and one is in terms of the total system we continue to complete the risk system and for our risk control system department and they will be going into the front line and to understand about the business and to cover all our counterparties and we focus on a comprehensive risk management as well as a whole exiting system and secondly it's also something that we continue to explore and we have seen good results which is that we continue to enhance the empowerment of technology to have more rules and to make sure that the traditional risk control is moving into the smart intelligent risk control and in terms of our risk control that is in place and through this new risk control system and we have established our investment business and which is helping us to establish our risk management automated warning system and to help us to manage the front, middle and back office and to help us in terms of price setting and as well as evaluation and stress testing and this has enhanced our analysis capabilities. On this basis, we would also like to talk about with the support of this information system and for us in our group in terms of coping with these different risks we have established the mechanisms and completed the system and the system's capability is continuing to be unleashed in terms of the risk management timeliness continues to be improved in the past two years we have followed very closely for instance Credit Suisse as well as the major loss incurred because of the derivatives trading for CCB. In terms of the hedging business, we have also taken active measures and with a high interest rate going on and with the instability in the financial market and we also see the interest hike by the Fed and its impact on the financial derivatives and these effects are continuing to spread. Going forward, we will continue to focus on the macro economy as well as the changes in the market and to do our jobs well and to make sure that we will hold on to our bottom line and to better coordinate our business and to ensure the CCB's development is for the long term. Thank you very much.

Thank you. Let's invite a question from the press in Hong Kong. Good afternoon, management. from Phoenix TV. We know that the downward pressure on net interest margin is a pressure imposed on the Chinese banking industry across the board. What are the implications? What's the outlook for this year? I'd like to know what measures will be taken by the management to boost the level of NIMA. Thank you. Mr. Sun, thank you for the question. Friends from the press and analysts both asked about the good performance of our operation, but I'd like to take a difficult question you asked. NEMA, as mentioned in the presentation, is down by 11%. This is in line with the trend of other banks. But the decline is comparable to other peers. We are doing quite good actually. The Euro PR is down. The market rate is down. These are the two main reasons. LPR last year was down by 15 basis points for one year and 35 basis points for five year term. There are few reasons on asset side. Our asset yield is down by six basis points. There are two aspects. First, we have committed to our responsibility of serving the real economy. LPR decline will lead to lower interest rates. The income is down by five BP. Market rate was going downwards last year, most of the time, albeit some slight increase in October. So the yield of our bonds is down by 6 BP. On liabilities, the gearing ratio is up by 6 BP. Our president mentioned in the presentation that we were faced with three pressures. In the economy and among companies and households, people have opted for term deposits and long-term loans. And this is a natural choice of all in difficult position. So the cost to income ratio is up by 5%. Other banks have changed their interest rates as well. So altogether, there is an impact of 6 BP. Faced with complex situation, we take the initiative to manage our assets. For example, adjusting the structure of major assets, increasing the proportion of interest bearing assets and using derivatives for risk management. With those measures, we have offset by 1 BP. So with our active management, we have withstood the test by improving by one basis point. We are not the one doing the best, but compared with other banks, we have maintained a leading position. As for the outlook for 2023, we believe we will still face some downward pressure in the coming year. Lower LPR will have more implications, especially in the coming year, so there will be continuous downward pressure. If you look at the breakdown by quarter, Q1 will be under the biggest pressure because personal loans have higher proportion in Q1, but in Q2, Q3 and Q4, NEMA will see their decline go slower. The management is taking that very seriously. We hope that we can improve on our NEMA indicator offsetting its decline in three aspects number one on asset we will continue to structure in an optimized way our assets adding more high yield assets and minimizing low yield assets in the first two months we have done that those products and services with low yields saw negative growth. So we could allocate more resources in higher yield businesses and products. So when serving the real economy, we can still achieve a stable yield. Secondly, in interest bearing assets, we need to strengthen the management by building scenarios and an ecosystem. And with digitalized services, we can offer low cost settlement funds to customers, both private and corporate customers. We need to strengthen the circulation of funds between upstream and downstream customers. And as for personal business, we need to manage existing loans and the greater wealth management business, so more low-cost funds will be deposited in CCB's account in order to reduce interest costs. Second, we are actively managing time deposits with long-term. We consciously reduce the interest rates of these loans, which paid off Thirdly, as I said last year, we tried to use some interest swamps and other derivatives to manage interest-related risks. However, risk management derivatives in mainland China are quite restricted. Last year they worked pretty well and this year we want to strengthen our efforts to use interest derivatives to hedge against some interest risks and by strengthening pricing management we can better manage the interest cost and interest cost so NIMA will be the downward pressure of NIMA will be diverted we hope that the pace will be slowing down

Thank you, Mr. Sun. And let's now go back to Beijing. And we have this gentleman on the left in the third row. Hello. This is Ma Funtong from CRSA. And I'd like to ask a question about deposits. And last year, deposits have grown quite well. What are the reasons behind this? And going forward, what's the deposit rate? And secondly, in terms of What measures do you have to continue to push the faster growth of a deposit? Well, let's have Mr. Durin to answer this question. Thank you for your question in terms of the faster growth of a deposit in 2022. There are mainly two reasons, and the first one is that the government macro policies has increased and strengthened. Secondly for CCB we have adopted to the changes in the market and to become a very innovative in terms of our deposit structure in the last year for our deposit we have 2.4 trillion and it is up by $807 billion and the growth speed is 11% in terms of deposit interest rate and the cost for us in the future trend. Looking at the 2022, our deposit cost, we still think that It is still implicit, and in the meantime, looking at it compared with our peers, we are still ahead of them. There are mainly three features. The first is that for our personal deposit for interest payment rate, it is decreased, and it is about 1.83%. It is down by three bips compared with the previous year. This is because we have very intensively looked at how to better manage the long-term deposit rate and in the meantime we have also perfected, we have also seen the regulators are now perfecting the interest rate of the system and which is why we have seen that for our bank and in terms of the interest that we need to pay out has decreased as a result and the second for corporate deposits We predict that it is better than our peers for the last year and we have seen that the corporate business and mainly for the CASA account and it has decreased. Of course, we have utilized our strengths which is the large customer base, we have used the whole process management of the corporate deposits and the changes in the corporate accounts, we are performing better than our peers. And thirdly, in terms of our deposit structure innovation, this is better for us to manage the deposit cost. For CCB, we have strengthened, for instance, differentiated deposits as well as digitalized deposits management and to help us to launch big wealth management and to focus on the areas whereby we can do better and strengthen our further capabilities. And we can see that this has helped us to offset the uptick of the deposit cost. Looking into 2023, we will continue to grasp the opportunities in the market to continue to push forward the high quality development of deposits and we are looking at this in three areas first is to devise and implement an active deposit growth strategy and we predict that in 2023 the national economy overall speaking we will see a recovery the capital in the market will be reasonable and sufficient therefore to help for us to have this strategy for deposit growth it is also quite a reasonable one and we are very actively approaching this and we have felt that the deposit generally speaking has increased and compared with the same period last year it has gone up further this is a good opening and secondly We continue to improve the deposit models in terms of corporate deposits and we are synergizing this with the corporate loans and to make sure that there is a better linkage and using our platform scenarios and to further expand our corporate business. In terms of personal deposits, there are mainly two ecologies. One is big wealth. and to make sure that we utilize the existing wealth of our customers and second, to grasp this opportunity of consumption ecology and we need to look at the deposits of the individuals for their consumptions and thirdly, we will continue to promote the coordination of deposit volume as well as pricing and we will need to see the continuous effect of this licensing for deposits. We will continue to add on more expansion of CASA accounting and to continue to perfect termed deposit structures. And looking at the first two months for our bank RMD deposits, the interest payment rate has decreased further. And overall speaking, we are very confident for 2023. Our deposit business will continue to realize a high quality growth and to serve the real economy and to provide a very solid foundation for the development of real economy.

Thank you, Mr. Li. let's invite one more question from the hong kong press thank you from hong kong business journal i'm very pleased that we finally have the opportunity to meet with the management in person after the pandemic every bank is trying to catch up with fast development. FinTech is one of your development focus areas and you said that you will invest more in FinTech development. Can you please elaborate on the development plans of your bank on FinTech? Mr. Wang will answer the question. Thank you for your interest in our FinTech development. CCB has attached great importance to FinTech. In 2008, we came up with a top plus strategy. Over five years, we have invested over 100 billion RMB in FinTech. Last year, we invested 22.3 billion, 3.07% in the total operating expenses, R&D and staff cost have risen continuously. We used to have only 7,000 staff members in FinTech segment. Now we have 15,800. Tech talents of CCB are at a leading position of the industry. We have received 1,245 patent applications, making us one of the top banks in this regard. fintech is one of our three major strategies our vision is to build our bank into a professional bank in technology without technology there will not be any finance so technology is integrated into every and each link of our bank's business digital technologies as one of the effective means to address financial problems, restructured the credit and financial systems, and it's in line with our philosophy of serving the mass public and offered strong support with strong momentum. CCB will continue to strengthen its capabilities to build a digital foundation with technology and digital services, we look at more financial innovation. We have a self-owned distributed system. This new system is responsible for serving 183 million customers, one quarter of our total workload. We have built AI capabilities based on different scenarios. We have self-owned AI platform supporting 742 scenarios. For example, the accuracy rate of optical identification of receipts is over 90%. One third of the trading services is done digitally. reducing 90% of inquiry and quotation time. On 31st January this year, we published CCB Cloud. CCB Cloud is now under control and it's operational in every department of CCB. It's one of the representative project of CCB in FinTech. The computing power and services CCB Cloud puts us at a leading position of the industry. Safety, security and stability are our priority. We have a multi-faceted security system boosting the digital transformation of the bank, concentrating our digital capabilities. Blockchain, big data and AI strengthen our capabilities in middle office, we hope that CCB can be the cloud platform of choice for our customers. Better fintech capability can be reflected in supporting businesses outside the bank. We export our technologies to other industry players as well to support the digitalization of our country lies in our responsibility as a major bank in china so i'd like to introduce to you our smart governance services we have made a strong progress in smart intelligence governance services we signed agreements with 27 provincial governments and provided 14 provinces and 13 municipalities with the internet plus platforms covering governance and other scenarios. For example, in Yunnan province, we developed a system where people can do everything on their mobile. And in Shanxi, in Chongqing, and in Hunan, we have developed comprehensive service platforms enabled by FinTech for these provinces. We have over 200 million customers and we have initiated 4 billion pieces of services. And we try to build digital government services for local citizens. We have 40,000 branches and in every branch we offer teller services and counters for digital government services. We can cover 8,000 items of services so people don't have to travel far for handling government services and on top of that by relying on 444 service points in rural areas and our online application for farmers we extended our services to countryside helping them revitalize local economy so people living in distant areas can enjoy smart administrative services and financial services. These are all relying on improved FinTech. We have more multifaceted mobile payment services covering education, healthcare, legal services, etc. We have over 16,000 service items and the total consumption exceeded 300 billion RMB. In line with the regulatory requirement, we offer our peer banks and other financial institutions our important experience and practice. Our core systems have been copied by policy banks, joint stock banks, and local commercial banks. We have received very good feedback for the proved safety and stability of the systems. So we will continue to use our financial technologies to serve the real economy and push forward the practice of new finance. We will cover inclusive finance, rental housing, rural revitalization and smart governance so our new finance initiative will enjoy high quality development and the ccb will serve china's modernization with digital technologies thank you mr wang and we'll go back to beijing

So we have this lady in row five, please. Thank you, management team. This is from a media. My question is mainly in real estate. Since last year, we can see that the government has come up with a set of policies that support the real estate development and what has CCB done in this area. In addition, we have also seen that in the banking sector, we have seen a lot of pressure in terms of people would like to pay down their mortgages early. How do you cope with this? Finally, I would like to understand for CCB in terms of the housing new innovative model as well as the push forward for your housing and rental leasing area, and what are your measures? So we'll have Mr. Chong to answer this question. For real estate sector, this is a sector that the market pays great attention to for housing mortgages and loans then this is an area it has always been our strength and therefore we adhere to the central government's policy which is that houses are for living not for speculation and the main purpose is to stabilize the market and to stabilize the land price we try our best to push forward the housing sector to develop in the innovative fashion and one is that we continue to provide all fronted help and assistance and support for instance through bond and through debt and through equity and through various measures for the high quality real estate companies' development, and second, to continue to improve our work efficiency and streamline the process for the companies that meet the requirement in terms of the whole process and the approval time is increased dramatically. Thirdly, we continue to optimize the real estate sector business and looking at the market and we continue to optimize real estate development loans and we differentiate the different projects And fourthly, we continue to make sure that there is the guarantee of delivery of the buildings and to make sure that it is legal and to ensure that we are protecting the livelihoods, protecting the stability and protecting the delivery of the houses. and for those customers who are within this scheme we actively implemented the 16 new measures by the regulators and in terms of whilst ensuring the guarantee from the judicial system and to make sure that the delivery of these houses will be guaranteed and ensure the rights of the consumers are protected. And you know that for CCB, actually, we are one of the commercial banks with the largest mortgages in China in terms of serving for the livelihoods and benefits of our citizens. This has always been our strength. And looking at 2022, and we have taken multi-pronged approach to continue to expand our business and to ensure the healthy development of our mortgage business on one hand we have a dedicated plan and looking at the fair value principle and established a 533 dedicated line for customers to call us and in addition we also have offline counters for consulting and advice services and to make sure that the online and offline business are aligned and to ensure that there are no agencies in the middle and to carry out for instance the transfer of mortgages and to make sure that for the paying down of mortgages in advance can be can be carried out in an orderly fashion second we need to make sure that there is a good marketing with the customers and to continue to meet their demand and for first-hand housings and it's mainly to make sure that there is a sufficient guarantee of mortgage and the second way ensure that there is improvement of efficiency and continue to work with the agencies and thirdly to continue to promote business promotions and innovations and we have come up with the innovative measures such as second-hand housing, mortgage, collaterals, and to improve our efficiencies. And number four, to continuously improve the digitalization foundation of mortgages and through our research and innovation, and to replace the face-to-face signing of mortgages to continue to improve CCB's speed and to work with this market. So last year in terms of real estate and mortgages we have seen quite a big percentage of improvement in this area and this has reached about 28.23 of the market share and it has also increased by 6.2% and our quality of the asset continues to improve and the overdue is only 0.37, so quite ahead of our peers. In the meantime, we are also expanding our business and implementing the housing and leasing business so we are trying our best to build a new model for our housing business and we have the following measures for instance number one we look at the diversified business development by end of last year for the rental leasing business we have about 200 billion and it is up by ATU 1.75 percent the previous year and it is growing very healthily and secondly we have established a housing fund and with the guidance from the relevant authorities and we have established a housing fund and we already have 13 projects that are established for instance in Beijing, Shanghai and in these first and second tier cities and we have provided about 7,000 different flats and together with China Banking we have established a subsidiary fund and in addition in Chongqing and we will also be utilizing all these social resources and to continue to ensure a healthy development of the real estate and thirdly we are ensuring the development of ensuring of the delivery of housing to the citizens and we have established different funds and we have dedicated staff and pushed forward in Guangzhou, Tianjin and projects as such in those cities and they have received very good feedback from the market. Number four, we have built a housing rental leasing ecosystem. And we are working with our staff to provide leasing services. For instance, this would also include consumption, credit, loans, et cetera. through enhancing the different ecosystems and for our customers and we have about 51 million of customers and this has brought us about million new customers and the total volume is about 218 billion so you can see very good results and you know that for CBSRC and they have issued their opinion paper on supporting the housing leasing market and to further expand the channels in this area for CCB going forward we will continue to look at expansion of our services for house leasing business into make sure that there is upgrading of the business and in addition to ensure the new transformation of the business model and to continue to create better value. Thank you.

Thank you, Mr. Chen. Next question from Hong Kong. Thank you, management, for the opportunity. From CLSA. My question has to do with inclusive finance. The president said that the bank is in a leading position in inclusive finance. Can you please talk about some special measures that have been taken? The market is quite interested in knowing your risks and interests. The government will roll out policies to allow late payment. Can you please also talk about the yield in inclusive finance. You also said that you are a leading bank in revitalizing rural development. Can you please elaborate on that? Mr. Cui from Beijing will take the question. Thank you for your interest. Inclusive finance is indeed an important topic. I prepared for that question, but I was a bit concerned that no one will ask about that. I met a few foreign clients. When I presented inclusive finance, no one would understand. But I was wondering why that happens as inclusive finance was actually burgeoning from other countries and imported in China. I think you asked three questions indeed. If you asked, since you asked about inclusive finance, I would like to take initiative to answer one more question regarding inclusive finance. Many people who didn't know much about inclusive finance would see it as something very difficult for a commercial bank. For myself, I experienced three stages. Number one, there was a stage where people were wondering if large commercial banks should be involved in inclusive finance. In the second stage, people were worrying that they might not be doing a good job in inclusive finance. But in the third stage, which we are at, we need to think about how we can build good and sizeable inclusive business, finance business. We have a sizable inclusive finance business. You also asked about yield and investment return and risks. I'll give you a few numbers. Inclusive finance is 2.35 trillion. The MPL ratio is only 1%. This is lower than the MPL ratio of the group. And it's much lower than the MPL ratio of our corporate business. As for investment return, it's around 4%. And this is achieved when we are still conceding benefits to customers. So this was achieved in a difficult position. in a normal time we can still increase the investment return but the national government wants us to assume our responsibility so with risks being controlled we will try our utmost to concede a profit to our customers So I believe if you compare the numbers above with other businesses, you will understand inclusive finance better. And by the way, the inclusive finance business also bring to us a lot of private banking business and supply chain financing business. And our banks supply chain finance business is more than other banks combined. So we have a lot of benefit but controllable risks. You would also ask how we achieved that. I think the key is having a sizeable customer base plus digital technology and database as well as risk appetite and restructuring credit model and other specialized systems for inclusive finance. These are our special characteristics of the inclusive finance business. For example, we have a very sizable database in inclusive finance. The group has established a data driven and a digital model driven business model for inclusive finance. Internally, 80% of our business is totally online. many of you have used our Huidongni platform with a few clicks you will get access to customers profile and their credit rating this is thanks to the development of big data technologies in china for example information about tax payment and transactions is available on this mobile system I believe we benefit that a lot from our national development 2.5 million customers will benefit from such a platform without technology without data people would still linger in the first stage and at the second stage it all breaks down to people's that the bank's risk management capabilities. We are very selective about customers. We have a huge network of physical branches which were involved in the development of inclusive finance. Sometimes even one branch would achieve a 200 million business volume for inclusive finance. we are very confident with the support of digital technology and data. This year, the management required that the bank should take more measures to develop inclusive finance in 2023. For example, credit customers in our plan will see higher proportion in the customer portfolio. we have 170 million market subjects but only 50 million customers have credit profile in CCB we have only 2 to 300 million customers who have credit profile so we need to cover more customers our loan balance is around 10% of the total market size It's a high level, but we are even more ambitious to increase the proportion of credit profile customers. And we need to accelerate the development of some platforms so we can cover more smaller size customers. Last year, the 3.0 version of Huidongyu platform was released. It added other features like wealth management, legal services, tax services, logistics, and supply chain services that connect both upstream and downstream catering to the needs of SMEs. This is the feature of our inclusive finance business. You also asked about the impact of late payment of loans. I think the national policies on that worked very well. They worked well in protecting this market participants so banks and banks would also develop new management models. People were probably concerned about bigger risks and potential issues after the policy is implemented in June this year. We comb through all the loans that involve late payment. They're not in a big size. It's only 3% of the total bank loan balances around 60 billion RMB. We will categorize these loans in a structured way according to their repayment capabilities and needs. And in general, the risks are still under control. we have full confidence that through internal management policies and other measures we can provide better services to these customers and the risks are totally under control please don't worry these types of loans are not of a large size and secondly low MPL ratio is attributed to higher credibility and better credit environment of the businesses in China. When it comes to inclusive finance, people think of those companies that couldn't sustain for long. But we believe there are still a huge number of good customers because we are talking about a market size of 100 million companies, small companies especially. So I'd like to call upon everyone to support the development of inclusive finance and the bank will continue to make better contribution to inclusive finance customers. You also asked about our progress in rural revitalization. Indeed, revitalization of rural areas is one of our focus areas and our measures have been implemented very well. I'd like to report on that. First, we have a rural revitalization platform through 440,000 service points. We have 14,000 bank branches, but our rural service points cover 440,000 service points across the country. We serve 52 million customers. When serving these customers, we provide this Yunlong Tong application we can get access to those customers who were not banked in the past we cannot cover every and each service point but through this smaller micro service points we can expand our market coverage we have two special loans for rural revitalization. For example, we have special loans for high standard farm fields. So last year, we made breakthrough in agricultural loans with this product. That's why we achieved a 21.8% in loans to revitalize rural areas. besides we have established a number of different scenarios of rural revitalization for example custodian services and other partnership with farmers so we set up a so-called friends circle with the farmers by offering more financial services through the different scenarios and better access and service points we can extend our service portfolio to rural areas fourthly we set up a risk management system it is implemented at every and each rural service point they offer a smart risk management system to farmers. So inclusive finance coupled with rural revitalization will offer our customers a large and broad sector. So the four aspects above were my answers to your question. Thank you for your interest again.

Thank you, Mr. Tsui. Actually, time is almost up. Perhaps Hong Kong and Beijing, we can each have one more question. So media from Hong Kong, do we have any questions? Yes, please. This lady. We can see that CCB has achieved very good results last year and full of confidence for your business this year as well. I have one question in terms of dividend payout and will you continue to increase and what is the percentage for dividend payout? So Mr. Sun, please take this question. Thank you for your question. CCB's growth, overall speaking, is to serve all our customers as well as serve all our shareholders and it is thanks to your support that we are able to achieve such good results. The good results of our performance is really inseparable from the support from our shareholders. So we will of course should share this with our shareholders and overall speaking 30% of dividend payout this will not change and on the basis of this 30% in terms of the dividend final figure will depend on our profitability and how well we do for 2023 and with the recovery of the economy overall speaking we believe that with CCB's continuous growth as we have mentioned for instance in terms of our non-interest income, et cetera, we believe that we will do better this year. And in terms of NIM, as we have heard, there is some pressure. So in terms of a dividend, the payout ratio is the same, but the actual amount will depend on our business performance. But overall speaking, of course, we hope that every year we can have a better and better performance for our shareholders.

Thank you. One more question from Beijing. Thank you, management, for the opportunity. I'm from commercial bank. We know that comprehensive finance is a mega trend, so investment banking capabilities are one of the keys in your development. So can you please talk about that in terms of underwriting and other aspects? How do you look at the outlook of building a stronger investment banking business? Mr. Cui. ccb has seen high quality development as a priority light asset development is one of the major strategies with light asset and light capital through direct financing and indirect financing and with finance and fintech we can build special capabilities of investment banking but more importantly we need to play the role bridging different markets so we can give full play to multiple licenses we own at the head office when serving important customers our investment bank has played an important role equally important with technology many customers are familiarized with traditional markets but investment banking and fintech will come down to intelligence I'd like to report back to you in three aspect first last year through investment banking we offered over 1.8 trillion of investment volume this offers very convenient services to our banks business stock underwriting business there were 747 times offering services to more than 400 customers and we are we have the most highest number of services among four major national banks we offer services to existing commerce customers in every aspect so in business volume and the number of customers we are indeed the number one among the four major banks and we focus on key industries in china industry like energies and agricultural industries. So we have a very high quality of investment banking business. We also underwrote 44 innovative categories of securities. 33.2 billion increasing by 166%. we have utilized 112 billion market capital. So investment banking is not only about services, it's also about connecting different market factors. And we have implemented mergers and acquisitions notes for real estate developers and tech companies. We have REIT business as well. We have issued 51 times of green bonds and we served over 8,000 SMEs. As the only one underwriting bank which covers a whole range of investment banking businesses, we are the number one among the four banks. In sovereign funds, We build a broad range of products. We have built a matrix of services that serve tech companies and there is a keen market demand from coastal areas where the economy is vibrant. Last year we served 972 tech companies and invested 120 billion and the intelligent technologies as an investment bank were fully obvious besides our credit products and equity products among other special products have observed the differences in market demand so we created the first assessment system in investment banking changing the old business model. Third, we have established a system for mergers and acquisitions and we have participated in mergers and acquisitions worth of more than 400 billion. There is still a great room for further development because the M&A market is gaining steam and many enterprises will need the opportunities for further M&A and structuring their stock structure. We have played the important role by digital technologies and intelligent enabling technologies in 2022. On our three major platforms, we have over 650 customers, registered customers, meaning 650,000 corporate customers used our investment platform. there were over 6 million visits. We have over 300,000 research reports covering 120 sectors and 664 economic indicators. So, to many customers, we offered intelligent services and financing services in general through these three platforms We have built CCB Investment Banking, a well-known brand, and I look forward to your continuous interest in our investment banking business so we can offer better branded services to the customers.

Thank you Mr. Tsui because today we have also had the online platform and so we have a question here and asking about CCB's international business and this is a question with respect to One Belt One Road RCEP and support Hong Kong's economy and social development and what are the effects that you have achieved. Thank you. Please welcome Mr. Wang. Actually, last year, this is quite a challenging year for the international community, whether it is for the pandemic or geopolitical conflicts, who are the major monetary countries and in terms of the monetary policies that they have adopted and there are fluctuations in the market however for CCB in terms of our business and we continue to push forward digitization and continue to push forward for the stable development of our international business we have achieved highlights so I would also like to briefly brief you and in terms of supporting export and trade. We continue to extend credit to make sure that the finance supply to the export and trading business, we have realized about 1.8 billion financing 1.8 trillion financing for the export and trading business, realized a 15% growth. In addition, we have also provided help and relief for the micro and small export business, and this has realized an input of 2.5 25 billion credit extensions to the micro and the small business and to support them. And in terms of cross-border RMB business, this is well underway for the whole year. We have completed 3 trillion RMB business. Our London branch has continuously maintained as the biggest RMB settlement bank outside of Hong Kong and realized RMB settlement of 7.5 billion. In terms of digitalization, we have a digitalized platform and this platform last year has played a very important role. 35 countries we have provided services for 170 000 of customers and to provide them with the business matching services and actually with the pandemic happening as a background and you can see that ccb has played a very important role in this area and we have also received a very very very good well feedback from our customers and last year we were also awarded the Asian Bank's ecological development and apart from this we have also worked on our blockchain development and there are about a transaction of over 12,000 blockchain transactions and in addition we also have been awarded one of the top 100 companies utilizing blockchain and at the moment we have about over 200 international agencies. We also have a business that is multi-currency and across different time zones and continuously to provide financial services to our customers and in this ever-changing market and our positioning is that We will be fully compliant and focus on our development and expansion. Our overseas business not only has realized our total business expansion as well as total revenue growth. With respect to One Belt, One Road, we continue to follow the One Belt, One Road initiative. In addition, we are also playing an active role. We utilize international syndicate for overseas merger and acquisition. We have mid and long term financial products and to provide financing services and convenience to countries along the One Belt and One Road And last year we have provided countries such as Poland, et cetera, in over 60 countries and provided them with the financing for energy and infrastructure and total amounting to 50 billion RMB. In addition, apart from this, for our overseas business, we also provide guarantee business and for this area, for instance, this would mainly be for some contracting business overseas. In addition, we are also very innovative. and we have provided about 140 small various currencies for our customers and this has also been well received. In addition we have also launched a one belt one road bond and raised funds of 1.7 billion with one belt and one road. CCB has played a very active role in RCEP. This is always one of our priority overseas market. I have two sets of data. to report and you will understand about our priority policies in terms of RCEP our total asset account for our overseas business of 66.3% and overseas financing has reached about 73.5% so you can see that they are both above 2 thirds and for our overseas balance has accounted for more than And for overseas business, RCEP is definitely one of the very important part. And with respect to Hong Kong, we have two business here, CCB Asia, which is the building that we are in at the moment. CCB Asia is mainly working from this building. In addition, we also have a CCB Hong Kong branch. So we have two institutions and one management team. Our Hong Kong institutions as one of the biggest our overseas business and this is a leader in our business and we continue to insist what President Xi has said in the Hong Kong's return to China and in his main speech and to support Hong Kong to be integrated to the development of China and to further consolidate various different industries such as trading and logistics, etc. And in last year's very complicated situation, Hong Kong has achieved very good results. On one hand, they have realized a positive profit growth and it has increased its profit by 1.5% year on year. In addition, for Hong Kong's loan business, and Hong Kong's loan business, whilst everybody is suffering a negative growth, Hong Kong has actually realized a positive growth in loan business. In addition, in major business such as cross-border RMB and product innovation, it has played a very important leading role, and to lead our group to move forward and to realize a very stable growth, and they have grasped the opportunity of RCEP. At the moment, in six RCEP signing countries have realized their business and project implementations and also strongly support GBA's development for the past three years and the total investment for $70 billion. In addition, also help Hong Kong to build a green finance building. Green Finance Center and ESG has $3 trillion and for Hong Kong, our Hong Kong institution is also an appointed, specifically appointed liquidity provider by Hong Kong MA and last year for the bond connect to the northbound and at the moment we are in top four. So all of these great achievements, you can see that they well reflect our Hong Kong institutions in terms of helping and supporting Hong Kong's economic and social development. We have also received very good development ourselves. Thank you, Mr. Wong. Ladies and gentlemen, in the interest of time, This concludes today's annual results announcement. If you have any further questions, please feel free to contact with our board office as well as the PR department and we will answer your questions in different ways again. Thank you very much for your long time support for CCB. I would also like to thank everyone for your participation today. Wish you good health and all your dreams will come true. Thank you very much for coming again.